Wondering what a reverse home mortgage could solve? You’re not alone! We’re asked that question all the time at GoodLife, so today we will discuss the different ways you may be able to benefit from this form of alternative financing. Here we’ll talk about 15 reverse mortgage benefits that enhance the lives of retirees across the country and how this type of loan could improve your circumstances, too. This is our list of benefits:
Supplement fixed retirement income
Postpone using other sources of retirement income
Help homeowners stay at home and age independently
Provide financial help to family members
End monthly mortgage payments
Pay off non-mortgage debt
Pay for ongoing health or disability expenses
Finance home improvements
Afford large purchases
Lock in home equity
Low risk of default
Federally insured
Flexible financing structure
No monthly payments
No inherited debt
Not just anyone can get a reverse mortgage. First, the youngest borrower must be at least 62. And the home must be your primary residence. You can’t take out a reverse mortgage on a second home or an investment property. You also must be able to demonstrate that you can maintain the property and pay property taxes, insurance, HOA fees, etc.
And finally, you must own your home outright (or those who have a mortgage must pay it off with either the reverse mortgage proceeds or other funds before they can use the proceeds for anything else).